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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (40442)3/19/1999 9:08:00 PM
From: Razorbak  Read Replies (1) | Respond to of 95453
 
Day Rates

<<I am presuming I am wrong and that day rates already are rising, otherwise the stock price rises in SLB, HAL, etc. are crazy. I would like to know why the rates are so responsive; my guess would be that they should lag, and improve only after substantial economic strength.>>

Greg: Actually, your original premise was correct. Domestic rig count just dropped by 8 today to a record low, and day rates are not yet rising.

dailynews.yahoo.com

<<Only when demand increases and rigs are more heavily subscribed does it make sense that oil service stocks should make money again.>>

Correct again, but the market likes to think ahead. Question is... how far ahead?

Razor



To: Greg Jung who wrote (40442)3/20/1999 1:19:00 AM
From: GlobalMarine  Respond to of 95453
 
Borrowing Mike Simmons' motto, "IT'S THE OIL PRICE, STUPID." If oil prices rise, it becomes more lucrative to drill. Just because OPEC is cutting production, it doesn't mean every oil company in the world has to cut E & P. If prices rise, oil companies will tend to spend more money exploring. The stock market anticipates, the stock market is forward looking. Why do you think energy stocks have climbed recently? Internet stocks, they're not.


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